Sunday, October 23, 2016

The Economist: The Winning Policy Platform

I happened to stumble upon an article entitled Defining Realignment from The Economist, which analyzes where the American electorate stands on policy choices and priorities alone, freeing them from party labels to see what kind of winning policy platforms might emerge in the future.  When I saw the thesis of the article, I immediately knew that this related to Hotelling & the median-voter theorem as a tool to win an election based on simple majority rule. What this article is doing is the homework on what those winning policy platforms may be so that Candidate X and Y can use this research to attract most votes from a broad electorate. 

A quick summary on Downs and Hotelling in its relation to the class:  Hotelling argues that a rational voter would choose a candidate whose views showed most “proximity” to its own; so, it incentivizes political parties to take positions most likely to convince the voter in the electorate’s ideological middle. 

Researchers from The Economist used an online poll of “over 7,000 registered voters, which asked respondents both to express their preferences on 12 different issues and how much they cared.”  They then multiplied each position by its importance and added them up for all voters.  Using analysis, they can find which party they might support. 

The Conclusion:  Using the candidates’ actual platforms in the 2016 race, the results indicated that 52% of registered voters were closer to Hillary Clinton’s basket of policies than to Donald Trump’s.  Remember that this approach removes the error of any party loyalties.  This means that Hotelling’s median voter sits to the left of the midpoint between the presidential candidates.  The results also matched with Hotelling’s argument that the most ideologically extreme platforms are not worth it because the margins of the median voter theorem curve just don’t garner much votes compared to the middle. 

Implications for the two parties:  The winning coalition, or suggested “secret formula”, could be built around an anti-globalization message.  The Economist argues that “the candidate would have to take centrist positions on abortion, gay marriage and gun control, and alienate business by backing popular but costly government benefits like national health insurance.”  IF you combined this with supporting a border wall, opposing the North American Free Trade Agreement and ignoring climate change, this basket would secure 51.2% of the vote against a more socially liberal platform backing NAFTA and immigration: close enough to maintain a stable two-party system across election cycles.

I think it’s important to remember that Hotelling & Down’s model does fail to account for turnout, since its big assumption is that there are no abstentions.  While this is not a fatal problem - especially if the demographic studies are "likely voters" instead of "eligible voters", it does add a degree of uncertainty and risk - a politician may be deterred from repositioning even if it apparently makes sense if it risks alienating and lowering turnout among the base. This creates a degree of "stickiness" in terms of policy positioning.

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